A Yuan Lesson: Currency Leaders Don't Follow

The answer to the currency question seems straightforward and, of course, it's centered on China.

An acceleration for yuan appreciation began in September, showing China indeed can lead a revaluation of its currency.

China's policy options include appreciation, maintaining the yuan's value (by pegging it to the U.S. dollar, for example) and depreciation. These options could be divided in the future according to the magnitude of appreciation or depreciation, or through so-called two-way fluctuations, which means appreciation sometimes and depreciation on other occasions.